Accounting. Chapter 9. Financial Statements Review # 1

what reports the final balances of the permanent account at the end of the fiscal period?

• Balance sheet

• Income Statement

• Statement of changes in owner's equity

• Worksheet

What is the difference between total revenue and total

expenses over a specific period of time?

• Profitability ratio

• Net income or Net loss

• Liquidity ratio

• return on sales

It is prepared to summarizes the effects on the capital account of the various business transactions that occurred

during the period.

• Worksheet

• Income Statement

• Balance Sheet

• Statement changes in Owner's Equity

These can be used up or converted to cash during the

normal operating cycle of a business

• Current ratio

• Current Liabilities

• Current Assets

• Liquidity ratio

Debts of the business that must be paid within the

next accounting period.

• Current Assets

• Current Liabilities

• Current Ratio

• Report Form

This is used to evaluate the earnings performance of

the business during the accounting period.

• Profitabilty Ratio

• Liquidity Ratio

• Return on Sales

• Report Form

This is used to evaluate the earnings performance of

the business during the accounting period.

• Profitability ratio

• Liquidity Ratio

• Return on sales

• Income statement

Liquidity ratios are used to evaluate the earnings performance of the business during the accounting period.

• True

• False

The current ratio is the relationship between current assets and current liabilities.

• False

• True

It is also known as the profit and loss statement

• Income Statement

• Worksheet

• Balance Sheet

• Financial statement